Bharati Vidyapeeth

(Deemed to be University)
Pune, India
Institute of Management and Entrepreneurship
Development, Pune

“A REPORT ON RETAIL LIABILITIES AND BRANCH BANKING”

A Summer Training Project Report
Submitted in Partial Fulfillment of the Requirements for the

Award of Degree of
Bachelor of Business Administration
2017 – 2020

Submitted by: Guided by:

MS.TANYA SINHA Dr. H.M BHAGAT
Roll No. : 233
Division: C

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2
 Certificate of originality

This is to certify that the project report entitled “A REPORT ON RETAIL LIABILITIES AND
BRANCH BANKING” submitted to Bharati Vidyapeeth (Deemed to be University), Pune in
partial fulfillment of the requirement for the award of the degree of Bachelor of Business
Administration is an original work carried out by MS.TANYA SINHA under the guidance of Dr.
H.M BHAGAT. The matter embodied in this project is the genuine work done by MS.TANYA
SINHA to the best of my knowledge and belief and has not been submitted before, neither to this
University nor to any other University for the fulfillment of the requirement of any course of study.

Ms. Tanya Sinha Dr. H.M Bhagat

(Assistant Professor)

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 Certificate

This is to certify that the project report entitled “A REPORT ON RETAIL LIABILTIES AND
BRANCH BANKING” is an academic work done by MS.TANYA SINHA and submitted in the
partial fulfillment of the requirement for the award of the degree of BACHELOR OF BUSINESS
ADMINISTRATION from Bharati Vidyapeeth (Deemed to be University), Pune. It has been
completed under the guidance of Dr. H.M. Bhagat (Assistant Professor) and Mrs. Smriti Arora
(Corporate mentor). We are thankful to Kotak Mahindra Bank Ltd .(Noida Sector-51) for having
allowed our student to undergo project work training. The authenticity of the project work will be
examined by the viva examiner which includes data verifications, checking duplicity of
information etc. and it may be rejected due to non-fulfillment of quality standards set by the
institute.

Dr. Sachin S. Vernekar

Dean FMS, BVDU
Director IMED

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 Acknowledgement

Apart from my efforts, the success of my project depends largely on the encouragement
and guideline of many others. I take this opportunity to express my gratitude to the people
who have been instrumental in the successful completion of this project.

I am gratefully indebted to our esteemed guide Dr. H.M BHAGAT for his sincere
guidance and priceless support which would have been impossible for us to complete this
project.

I express my gratitude to the staff members of Bharati Vidyapeeth (Deemed to be

University) who directly or indirectly helped me. I would also like to express my sincere
gratitude to all my office colleagues in KOTAK MAHINDRA BANK LTD. (NOIDA
SECTOR-51)

Finally I thank Institute of Management and Entrepreneurship Development (IMED)

for giving me this golden opportunity to do my summer internship in KOTAK
MAHINDRA BANK LTD. (NOIDA SECTOR-51)

MS.TANYA SINHA

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 Preface

In this era of fast changing world, mere classroom teaching is not sufficient to attain
maturity and perfection for application of theory into practice. The dynamic economy,
political and technological environment in which we live continually place demand on us
to change, improve and learn more about jobs, superiors and subordinates. Two years of
continuous teaching is not sufficient for students to implement directly their knowledge in
the market. A practical approach is needed.

The knowledge through the project repot is an essential requirement for BACHELOR OF
BUSINESS ADMINISTRATION students. The purpose of this project is to study the
financial aspects of an organization with the special reference to KOTAK MAHINDRA
BANK LTD. (NOIDA SECTOR-51)

I have tried my level best to do justice to the project. And I hope the study which was
conducted will help not only to the organization but also me and the society too.

MS. TANYA SINHA

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 TABLE OF CONTENTS

Sr. No. Page

Chapters
No.
1. Introduction 7-18
 1.1 Industry background 8
 1.2 Profile of the organization 9-15
Problems of the banking industry & Kotak
 1.3 16
Mahindra Bank Ltd.
 1.4 Competitors information 17
 1.5 SWOT Analysis 18
2. Research Methodology 19-22
 2.1 Statement of the Problem 20
 2.2 Objective of the study 20
 2.3 Managerial usefulness of study 20
 2.4 Type of research and research design 20
 2.5 Data collection method 21
 2.6 Limitations of study 22
3. Conceptual Discussions 23-26
 3.1 Review of literature 24-26
4. Data Analysis 27-35
 4.1 Data Analysis 28-34
 4.2 Overview Analysis 35
My Contribution to the Body of
5. 36-37
Knowledge
6. Findings, Conclusion and Suggestions 38-40
7. Summary of the project 41-43
 7.1 Appendix 42-43
 7.2 Bibliography 43

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 Chapter 1

INTRODUCTION
 Industry background
 Profile of the Organization
 Problems of the banking industry & Kotak Mahindra Bank Ltd.
 Competitors Information

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1.1-INDUSTRY BACKGROUND-

The banking sector is the section of the economy devoted to the holding of financial assets for
others, investing those financial assets as leverage to create more wealth and the regulation of
those activities by government agencies.

Holding of Financial Assets –

This is the core of all banking, and where it began—though it has expanded far beyond the days of
holding gold coins for Holy Land pilgrims in exchange for promissory notes. A bank holds assets
for its clients, with a promise the money may be withdrawn if the individual or business needs said
assets back. Avoiding devastating bank runs that could destroy the sector as a whole is why banks
are required to maintain at least 8% of their book values as actual money.

Using Assets as Leverage -

Traditionally, banks leverage the money in their vaults as loans, earning money from the interest
rates charged on those loans. The great contradiction of banking is that almost all of a bank's actual
money is nowhere near its vaults; meaning that its true value is only paper, yet that paper value is
what grows the economy.

Regulation of Banking Activities -

Because banks are the underpinning of a modern economy, governments naturally have laws in
place to prevent banks from engaging in dangerous activity that threatens the economy; these laws
are often enacted after hard financial lessons, such as the creation of the Federal Deposit Insurance
Corporation (FDIC) in 1933 after the bank panics of the previous 50 years. However, such laws
are campaigned against by banks and are sometimes removed, and this has led to history repeating
itself.

The financial crisis of 2008 was created, in part, by several U.S. banks over-investing in subprime
mortgages. Prior to 2000, there were laws that limited the amount of subprime mortgages
available, but deregulation efforts removed this limitation and permitted the crisis to happen. It
was not the only cause, but it was the tipping point that destroyed worldwide trust in the banking
sector.

The banking sector's core is trust. Without it, no one would deposit money, and it would be unable
to use that money to give loans, invest and drive economic growth, and regulation is used to create
that trust.

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1.2-PROFILE OF THE ORGANISATION-

A) HISTORY-

The company was incorporated on 21st November 1985 under the name Kotak Capital
Management Finance Ltd. The Company has been promoted by Mr. Uday S Kotak, Mr S.A.A
Pinto and Kotak & Company.

The company obtained the certificate of commencement of business on 11th February 1986 and
the Existing promoters were joined by Mr. Harish Mahindra and Mr. Anand Mahindra. The
company's name was changed on 8th April 1986 toits present name Kotak Mahindra Finance Ltd.
- The Company deals in Bill discounting, leasing and hire purchase, corporate finance,
management of fixed deposit mobilization, financing against securities, money market operations,
consumer finance, investment banking and clients' money management.

1990-
3,08,770 No. of equity shares subscribed for by the promoters, directors, 3,41,230 No. of equity
shares allotted as rights as on 28.3.89. 19,50,000 shares issued as bonus.

1991-
An application was made to SEBI for approval for setting up a Mutual Fund trust and an asset
management company.
The Company's newly established Foreign Exchange Risk Management Service carters to the vast
potential demand for price risk management.

1992-
In January, the Company offered and allotted 15,50,000 - 14% secured partly convertible
debentures of Rs 90 each for a total value of Rs 13.95 crores.
Additional 30,000 debentures to promoters, directors, etc., 9,500 debentures to employees and
1,93,000 debentures to Indian public were allotted to retain oversubscription.
In April, the Company has raised Rs. 18 crores by issue of Commercial Paper which has been
awarded P1 + rating by Credit Rating and Information Services of India limited (CRISIL)
indicating highest standards of safety.

1993-
The Company's newly set up Corporate Advisory Services Group received several mandates for
advice on mergers and acquisitions and re-structuring and some have already been executed with
success.

1994- The Company entered into a Memorandum of Understanding with KB Currency Advisors
Inc. USA to market their Foreign Exchange Fund Management programme.
The Company has received the approval of Securities and Exchange Board of India (SEBI) for
setting up a mutual fund.

1995 –
The Company entered into a joint venture agreement with Ford Credit International Inc. (FCI), a
subsidiary of Ford Motor Credit Co., USA. It was proposed to finance all non Ford Passenger cars.
- Kotak Mahindra Capital company became a subsidiary of the Company.

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1996-
- The Company's operations were affected by the liquidity crunch, scarcity of resources,
sluggishness in the capital markets and the overall deceleration of economic growt.- The Company
has entered into a MOU with the Chubb Corporation, New Jersey, U.S.A., one of the largest
American Insurance firms, to develop a Joint Venture dedicated to the conduct of causality and
property insurance business in India
.- The Company has invested a sum of about Rs 200 lakhs in Matrix Information Services private
Ltd. (Matrix), a company formed for providing comprehensive value added information to
business and general users. Matrix is a wholly owned subsidiary of the company.

1997-

In recognition of the Company's prudent funds management, CRISIL has assigned a rating of AA+
to the Company's public issue of Non-Convertible Debentures and P1+ for all short term
borrowings up to Rs.35000 lakhs
.- Kotak Mahindra Finance Ltd, has decided to venture into health insurance business
.- Kotak Mahindra Finance has launched a new consumer finance product called Kotak Mahindra
K-Value.

1998-
Kotak Mahindra Asset Management Company Limited (KMAMCL) launched its mutual fund
schemes in December.
- The Company it would launch its mutual fund with two schemes –
- KGilt Unit Scheme and K30 Unit Scheme.
- Kotak Mahindra Finance is a joint venture with Goldman Sachs.

1999-
- The `FAA' (pronounced `F double A') rating assigned to the fixed deposit programme of Ford
Credit Kotak Mahindra (FCKM) has been reaffirmed
.- With the allotment to the Company of 50,000 equity shares of Rs. 10 each by Kotak Mahindra
Trustee Company Limited (KMTCL) on 12th May.

2000- - Kotak Mahindra Finance Ltd (KMFL) and Chubb Corporation of the US have decided to
call off their joint venture for entering the general insurance business in India
.- The Company has decided to set up a venture capital fund with an initial corpus of Rs. 100 crore
.- KMFL has set up a new asset reconstruction division to offer recovery management services to
players in the financial services industry.
Kotak Mahindra Finance Ltd has been assigned Ind AAA rating (indicating highest credit quality)
for its Rs.510 million medium term borrowing programme.
- Fitch India has assigned a rating of Ind AAA to the Rs 51-crore medium term borrowing program
of Kotak Mahindra Finance Ltd for high credit quality and negligible risk factor.

2001-
The Bharat Petroleum Corporation Ltd (BPCL) has decided to part ways with Kotak Mahindra,
one of the leading domestic financial services company, in its convenient store venture In & Out.

2002-
-Kotak Mahindra Finance Company has shortlisted i-flex solutions 'Flexicube' and
'Infosys','Finnacle' for its core banking solutions.
KMFL's business has seen a fast growth with the total disbursement of commercial vehicle loan of
the company in the last fiscal was tuned to Rs. 250cr.

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2003-
-RBI has granted license to Kotak Mahindra Finance Ltd to embark on its banking business.
-Kotak Mahindra Bank has entered into an ATM sharing agreement with UTI Bank, which would
allow KMB's customer free access to around 800 ATM's.

2004-
- Kotak Mahindra Mutual Fund has launched Kotak Opportunities, an open-ended equity growth
scheme
-Kotak Mahindra Bank inks pact with Reuters.

2005-
-Kotak Mahindra Bank has given the Bonus in the Ratio of 3:2
- Kotak Mahindra Bank purchases stressed assets worth Rs 1,000 cr

2006-
- -Kotak Mahindra joins hand HDFC Bank to share ATMs.
-Kotak Mahindra to buy out Goldman Sachs' stake in JVs

2007-
- -Kotak Mahindra Bank Launches Home Banking, Improves Banking Experience
-Kotak Mahindra Bank Launches Salary 2 Wealth
-Kotak Mahindra Bank Launches Kotak Gold Debit Card

2008-
- Kotak Mahindra Bank launched credit cards for its customers

2009-
- Kotak entered into tie up with Russia's top investment bank
-Kotak Mahindra Bank Wins IT Team of the Year for 3rd Consecutive Time at the Banking
Technology Awards 2008

2010-
-Kotak Mahindra Bank has launched a credit card called Kotak Trump Card that offers 10% cash
back on dining as well as movie and play spends.

2011-
-Kotak Bank opens 300th branch
-Kotak Mahindra Bank launches interbank mobile payment service

2012-
-Kotak Mahindra Bank has implemented the advanced core banking platform Finacle 10 universal
solution across 355 bank branches in association with the IT bellwether Infosys.

2013-
-Kotak Mahindra Bank acquires the business loans portfolio of Barclays India
-Kotak Mahindra Bank launches Kotak Presidium with President Bill Clinton
-Kotak Mahindra Bank bags Celent Model Bank Award for its Core Banking implementation
-Kotak Mahindra Bank announces 'Onam Bonanza' for new NRI Customers
-Kotak Mahindra Bank's mobile banking app among world's best in 2013 Mobile Excellence
Awards
-Kotak Mahindra Bank launches Kotak Multi Currency World Travel Card

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2014-
-Kotak Mahindra Bank launches Jifi - a first of its kind fully integrated social bank account
-Kotak Mahindra Bank exclusively sets up 24 ATMs at Mumbai Metro One stations-Kotak Wealth
launches 'Top of the Pyramid 2014'
-Kotak Mahindra Bank Launches KayPay
- WorldÂ’s First Bank Agnostic Instant Funds Transfer Platform Using Facebook.

2015-Kotak Mahindra Bank Ltd has informed BSE that Reserve Bank of India has approved the
scheme of amalgamation of ING Vysya Bank Limited with Kotak Mahindra Bank Limited
-Kotak Mahindra Bank launched Jifi Saver, a social savings bank account-Kotak Mahindra Bank
and ING Bank Sign MoU for Cross Border Business
-Kotak Mahindra Bank unveils offline mobile banking app

2016-Kotak Mahindra Bank arm buys 6.8 pct stake in Diamond Power Infrastructure Ltd
-Kotak Mahindra Bank Launches International Banking Unit in GIFT City
-Kotak Mahindra Bank gains over 3% on RBI nod to CPPIB proposal
-ING sells 2.5% stake in Kotak Mahindra Bank for Rs 3,653 crores

2017
-Kotak Mahindra Bank launches Kotak Remit Aadhaar-based Instant Forex Remittance Solution.
-Kotak Mahindra Bank launches Kotak 811 Savings Account
.-Kotak Mahindra Bank Ltd.(Noida Sector-51) has acquired 13,26,75,452 equity shares of Rs. 10
each of Kodak Mahindra Old Mutual Life Insurance Ltd. for a consideration of Rs. 1,292.7 Crore
payable in cash
.-Kotak Mahindra Bank launches Smart Banking 24x7 e-Lobbies.
-Kotak Mahindra Bank and Zeta launch Payment a multi-wallet digital prepaid solution for
salaried employees.

2018

-Kotak Mahindra Bank consolidated Q1 net up 23%

-Demand for auto loans eases, lending to sector remains cautious
-Kotak Mahindra Bank stock rallies 2% after PAT rises 32.7% in Q
-Kotak Mahindra Bank Q4 profit up 25 per cent on higher interest income 2018
-Kotak Mahindra Bank Posts Slowest Profit Growth in 10 Quarters
-Kotak Mahindra Bank Ltd.(Noida Sector-51)’s profit rose at its slowest pace in 10 quarters even
as India’s third- largest private lender’s asset quality improved.
-Kotak Mahindra Bank says mobile banking surged 172% YoY in Q1FY19

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B) VISION-

The Global Indian Financial Services Brand

Our customers will enjoy the benefits of dealing with a global Indian brand that best understands
their needs and delivers customized pragmatic solutions across multiple platforms.
We are a world class Indian financial services group. Our technology and best practices are bench-
marked along international lines while our understanding of customers will be uniquely Indian.
We are more than a repository of our customers' savings. We, the group, are a single window to
every financial service in a customer's universe.

The Most Preferred Employer in Financial Services

A culture of empowerment and a spirit of enterprise attract bright minds with an entrepreneurial
streak to join us and build long-term careers with us.
Working with a home grown professionally managed company, which has benefited from
partnerships with international leaders, gives our people a perspective that is universal as well as
unique.

The Most Trusted Financial Services Company

We have created an ethos of trust across all our constituents. Adhering to high standards of
compliance and corporate governance is an integral part of building trust.

Value Creation
Value creation rather than size alone will be our business driver.

C) MISSION –
Building better relationships with customers
To exceed guest expectations
To achieve excellent financial results

D) PRODUCTS OFFERED-
Kotak Group Products and Services

1. Bank

2. Credit Cards

3. Life Insurance

4. Mutual Funds

5. Car Finance

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 6. Securities

7. Institutional Equities

8. Investment Banking

9. International Business

10. Kotak Private Equity

11. Kotak Realty Fund

12. Wealth Management

Services of Kotak Mahindra Bank-

Deposit Accounts

 Savings Account

 Current Account

 Term Deposits

 Corporate Salary Accounts

 JIFI Account

 Safe Deposit Locker

 Kotak 3-in-1 Account

Kotak Loans

 Personal Loans

 Home Loans

 Loan Against Property

 Education Loan

 Tractor Finance

 Rural Auto & Farm Equipment Finance

 Home Improvement Loans

 Home Loan Balance Transfer

 Gold Loans

 Commercial Vehicle Finance

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  Loan Against Securities

 Construction Equipment/Infrastructure Finance

 Saral Auto Finance

Kotak Cards

 Debit Cards

 Credit Cards

 Compare Credit Cards

 Kotak Netcard

 Best Compliment Cards

 Kotak Multi Currency World Travel Cards

Convenience Banking

 Net Banking

 Mobile Banking

 Phone Banking

 ATM Network

 Money Watch

 Hashtag Banking

 Kotak Payment Gateway

 Insta Balance Service

 Immediate Payment Service

 Alerts

 SMS Banking

 Cash Deposit Machine

Investment and Insurance

 Demat

 Mutual Funds

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  Life Insurance

 Qualified Foreign Investor

 ASBA

 National Pension System

1.3- PROBLEMS OF THE BANKING INDUSTRY & KOTAK MAHINDRA BANK LTD. –

1. Not making enough money. Despite all of the headlines about banking profitability, banks
and financial institutions still are not making enough return on investment, or the return on
equity, that shareholders require.

2. Consumer expectations. These days it’s all about the customer experience, and many banks
are feeling pressure because they are not delivering the level of service that consumers are
demanding, especially in regards to technology.

3. Increasing competition from financial technology companies. Financial technology

(FinTech) companies are usually start-up companies based on using software to provide
financial services. The increasing popularity of FinTech companies is disrupting the way
traditional banking has been done. This creates a big challenge for traditional banks because
they are not able to adjust quickly to the changes – not just in technology, but also in
operations, culture, and other facets of the industry.

4. Regulatory pressure. Regulatory requirements continue to increase, and banks need to spend
a large part of their discretionary budget on being compliant, and on building systems and
processes to keep up with the escalating requirements.

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1.4-COMPETETITORS INFORMATION -

1. Axis Bank( Private Sector Bank)-

Axis Bank is the third-largest of the private-sector banks in India offering a
comprehensive suite of financial products. The bank has its head office in Mumbai,
Maharashtra. It has 4050 branches, 11,801 ATMs and 4,917 cash recyclers spread across
the country as of 31 March 2019 and nine international offices. The bank employs over
55,000 people and had a market capitalization of ₹1.31 trillion. It sells financial services
to large and mid-size corporates, SME and retail businesses.

2. Union Bank of India (Public Sector Bank)-

Union Bank of India is one of the largest government-owned banks of India; the
government owns over 90% of its share capital. It is listed on the Forbes 2000, and has
assets of US$13.45 billion. UBI has around 4,300 branches. Four of these are overseas in
Hong Kong, Dubai, Antwerp, and Sydney. UBI also has representative offices at
Shanghai, Beijing and Abu Dhabi.

3. Federal Bank( Private Sector Bank)-

Federal Bank is a Private Sector, scheduled commercial bank in India, headquartered in
Aluva, Kochi. The Bank also has its Representative Offices abroad at Abu Dhabi and
Dubai. With a customer base of 8 million, including 1.2 million NRI customers and a
large network of remittance partners across the world, Federal Bank claims to handle more
than 15% of India’s inward remittances. The Bank has remittance arrangements with more
than 110 Banks/Exchange Companies across the world. The Bank is also listed in the
BSE, NSE and London Stock Exchange and has a branch in India’s first International
Financial Services Centre at GIFT City in Gujarat

4. HDFC (Private Sector Bank)-

HDFC Bank Limited is an Indian banking and financial services company headquartered
in Mumbai, Maharashtra. It has 104,154 permanent employees as of 30 June 2019. HDFC
Bank is India’s largest private sector lender by assets. It is the largest bank in India by
market capitalization as of February 2016. It was ranked 60th in 2019 BrandZ Top 100
Most Valuable Global Brands.

5. SBI(Public Sector Bank)-

The State Bank of India is an Indian multinational, public sector banking and financial
services statutory body. It is a government corporation statutory body headquartered in
Mumbai, Maharashtra. SBI is ranked as 216th in the Fortune Global 500 list of the world's
biggest corporations of 2018. It is the largest bank in India with a 23% market share in
assets, besides a share of one-fourth of the total loan and deposits market.

6. Bank of Baroda (Public Sector Bank)-

Bank of Baroda is an Indian multinational, public sector banking and financial services
company. It is owned by Government of India. Based on 2019 data, it is ranked 1145 on
Forbes Global 2000 list. BoB has total assets in excess of ₹ 3.58 trillion, a network of
9583 branches in India and abroad, and 10441 ATMs as of July, 2017. The government of
India announced the merger of Bank of Baroda, Vijaya Bank and Dena Bank on
September 17, 2018 to create the country's third largest lender

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1.5- SWOT ANALYSIS –

Kotak Mahindra SWOT Analysis

Below is the Strengths, Weaknesses, Opportunities & Threats

(SWOT) Analysis of Kotak Mahindra. Strengths are:
1. Innovative financial products of diverse categories
2. Kotak Mahindra Finance Ltd. is the first company in the Indian
banking history to convert to a bank
3. Comprehensive Cash Management System
4. Has over 20,000 employees
Strengths 5. Customer account base of over 2.7 million

Here are the weaknesses in the Kotak Mahindra SWOT Analysis:

1. Lesser penetration as being late entrants
2. Low publicity and marketing as compared to other premium
Weaknesses banks in the urban areas

Following are the Opportunities in Kotak Mahindra SWOT

Analysis:
1. Increase in Industry banking
Opportunities 2. Explore opportunities abroad by International banking

The threats in the SWOT Analysis of Kotak Mahindra are as

mentioned:
1. Economic slowdown
2. Highly competitive environment
Threats 3. Stringent Banking Norms

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Chapter 2

Research methodology
 Statement of the Problem
 Objectives of the study
 Managerial usefulness of study
 Type of research and research design
 Data collection method
 Limitations of study

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2.1-Statement of the Problem-

The research was done to understand branch banking and customer satisfaction with retail
liabilities of the bank in detail. The intention of the study was to get insight of customer
satisfaction with Kotak Mahindra Bank Ltd.

2.2-Objective of the study-

The major objectives of this study are:

 To know the satisfaction level of the customers regarding the various retail account
services.
 To know how well the bank maintains the customer-employee relation.
 To know the goodwill of the bank.
 To know the key area to be concentrated for increasing the customer satisfaction.
 To know the problems of the customers and to know their suggestions to enhance the
quality of the services.

2.3-Managerial usefulness of study-

Throughout the internship period working as an Assistant sales Manager gave on field an
experience for hiring processes with different tactics used by organization. It is worth to mention
that; the members of the office were very informative. Moreover, studying in university course,
course text book and search engine was helpful to accumulate theoretical knowledge with
practical.

2.4-Type of research and research design-

1. Descriptive Research: Descriptive research includes surveys and fact-findings enquiries

of different kinds. The major purpose of descriptive research is description of state of
affairs as it exists at present.
2. Questionnaire method was followed for the research
3. Primary Data: In some cases, the researchers may realize the need for collecting the first
hand information. As in the case of everyday life, if we want to have firsthand information
on any happening or event, we either ask someone who knows about it or we observe it
ourselves, we do the both. Thus, the two methods by which primary data can be collected is
observation. Those data collected first hand, either by the researcher or by someone else,
especially for the purpose of the study is known as primary data.

21
 4. Secondary Data: Any data, which have been gathered earlier for some other purpose, are
secondary data in the hands of researcher through various articles and websites.
5. Information was collected through both primary and secondary sources.

Research Design

The research design took for the study was ―Descriptive Research Design‖.

2.5-Data collection methods-

In this study, both the primary data collection method and secondary collection method have been
used to collect data.

Primary Data Collection

Research approach Survey method

Research instrument Questionnaire
Method of Contact Personal
Sample size 10 Respondents

Survey method was used in the study because of its :

 Extreme Flexibility
 Reliability
 Easy Understand ability

The main purpose of survey is to understand views about the product of KOTAK MAHINDRA
BANK by customers as well as consumers.

Secondary Data Collection

Secondary data has been collected from the data available on the internet i.e. from Wikipedia and
other internet websites.

Sampling :-

22
A sample is a part of population. The sample should be representative of the population and the
information obtained must be reliable. In any survey where reliability is desired, the errors and
variances have to be controlled, measured and interpreted.

Sample Unit: KOTAK MAHINDRA BANK LTD.(NOIDA SECTOR-51)

Sample Frame: DELHI CITY

Sampling Method: Convenient sampling Method was Used as it was suitable for the survey carried
out to calculate certain number of samples (people/ customers) and this method was easy to
understand the percentage of satisfaction and other data.

Sample Size: Total 10 respondents were conveniently selected, who are the customers of Kotak
Mahindra Bank.

2.6-Limitations of study-

There are certain limitations in this report; otherwise the report including the analysis might be
more accurate and beneficial. At first, it was difficult to get an order from higher level employees
as an internee like me. There were a lot of learning made but that was not that much sufficient to
maintain a report and do a deep analysis of the organization.
The data is analyzed and represented in accordance to the reviews obtained through
questionnaires; the result may slightly vary if a different interpretation method is used. . The
biasness was also being taken care of. The area of sample was decided after taking into
consideration the major factors like – 1) Number of customers visiting the branch
2) Approachability
3) Time available with them for interaction.

23
Chapter 3

Conceptual Discussions

 Review of Literature

24
3.1-Review of Literature-

Literature review is indispensable part of this article because it represents whole range of research
in the past on the topic selected on the basis of which research design of a study is formulated.
Literature review gives better insight and helps to bridge gap for the research to be undertaken.

CONCEPT OF BRANCH BANKING –

Branch banking is engaging in banking activities such as accepting deposits or making loans at
facilities away from a bank's home office. Branch banking has gone through significant changes
since the 1980s in response to a more competitive nationwide financial services market. Financial
innovation such as Internet banking will greatly influence the future of branch banking by
potentially reducing the need to maintain extensive branch networks to service consumers.

HOW BRANCH BANKING WORKS ?

Branch banking allows a financial institution to expand services to an area outside of the home
location, functioning as an extension of the home location. This can be a more cost-effective
approach because not all locations are required to offer the same levels of services as the home
location, allowing smaller offices to provide key services while larger locations provide additional
services.

According to a GOBankingRates survey in early 2019, almost half of the 1,000 participants stated
their preferred method of banking was using a branch bank or ATM. Twenty-five percent
responded that they use a mobile app instead of branch banking.

However, according to the American Bankers Association (ABA), the number of US bank
branches went down from 99,540 in 2009 to 91,861 in the third quarter of 2016. (These are the
most recent figures available, as of early 2019.) These figures were gathered by the Federal
Deposit Insurance Corp. for the ABA and reported in an article in the Washington Post.

Certain banks assert that additional branches are underperforming, likely due to the increase in
online banking options, but will likely remain. Concern over certain regulations, like the
Community Reinvestment Act of 1977, which governs banking activities in rural communities, has
reduced the rate and number of bank closures to a degree.

25
CONCEPT OF RETAIL LIABILITIES –

Retail banking, also known as consumer banking, is the typical mass-market banking in which
individual customers use local branches of larger commercial banks. Services offered include
savings and checking accounts, mortgages, personal loans, debit/credit cards and certificates of
deposit (CDs). In retail banking, the focus is on the individual consumer.

Understanding Retail Banking -

Retail banking aims to be the one-stop-shop for as many financial services as possible on behalf of
individual retail clients. Consumers expect a range of basic services from retail banks, such as
checking accounts, savings accounts, personal loans, lines of credit, mortgages, debit cards, credit
cards, and CDs.

Most consumers utilize local branch banking services, which provide onsite customer service for
all of a retail customer's banking needs. Through local branch locations, financial representatives
provide customer service and financial advice. Financial representatives are also the lead contact
for underwriting applications related to credit-approved products.

ONLINE BANKING-

Online banking, also known as internet banking, is an electronic payment system that enables
customers of a bank or other financial institution to conduct a range of financial transactions
through the financial institution's website. The online banking system will typically connect to or
be part of the core banking system operated by a bank and is in contrast to branch banking which
was the traditional way customers accessed banking services.

A system allowing individuals to perform banking activities at home, via the internet. Some online
banks are traditional banks which also offer online banking, while others are online only and have
no physical presence. Online banking through traditional banks enable customers to perform all
routine transactions, such as account transfers, balance inquiries, bill payments, and stop-payment
requests, and some even offer online loan and credit card applications. Account information can be
accessed anytime, day or night, and can be done from anywhere.

KOTAK 811-

Open a bank savings account in 5 minutes with Kotak 811. 811 is a zero balance bank savings
account offered by Kotak Mahindra Bank. This savings account was inspired by the government’s
decision to demonetise high value currency notes last year on 8th November. In a bid to transform
the Indian economy into a cashless one, Kotak Mahindra Bank launched 811, a full-service digital
banking system on your mobile. Kotak 811 account is for single users. Joint accounts cannot be
opened with Kotak 811.

Kotak Mahindra Bank also offers other digital accounts such as 811 Lite Savings Account and 811
OTP Savings Account to cater to the varying needs of its customers. Those without a PAN or
Aadhaar number can apply for Kotak 811 Edge account.

26
Features and Benefits of 811 Savings Account

Listed below are the various features and benefits of Kotak Mahindra Bank 811 savings account:

 Zero minimum balance requirement.

 Zero charge for digital transactions.
 Earn a maximum of 6% p.a. on balance over Rs.1 lakh to maximum Rs.5 crores.
 Earn a maximum of 5% p.a. on balance up to Rs.1 lakh.
 Earn a maximum of 5.5% p.a. on balance above Rs.5 crores.
 Instant account opening with Aadhaar card and PAN card details.
 Online shopping can be done using this account as a virtual debit card.
 Using Scan & Pay, you can make payments for in-store purchases.
 Free IMPS, RTGS, and NEFT features for money transfer through NetBanking and
mobile banking.

27
Chapter 4

Data analysis
 Data analysis
 Overview of data
 Overall overview

28
4.1-Data analysis-

In this chapter, efforts have been made to analyze and interpret the collective data towards the
customer satisfaction with the bank through questionnaire.

First of all, the collected data have been presented in tabular form and thereafter it is analyzed with
the help of percentage and pie charts.

4.2-Overview of data-

Table 1: Showing the feedback from respondents for the following questions

Yes No
Questions
No. % No. %

1. Do you think your bank offers competitive interest

rates? 06 60% 04 40%

2. Do you use the services of alternative bank?

04 40% 06 60%

3.Would you recommend this bank to your friends and

relatives?
08 80% 02 20%

29
Data analysis through pie charts
Figure 1: Figure 2:
Do you think your bank offers Do you use the services of
competetive interest rates ? alternative bank ?
00

40%
40
60%
60

YES NO YES NO

Figure 3:

Would you recommend thisbank

to your to your friends and
0
relatives? 0

20%

80%

YES NO

Interpretation:
From the above table and chart, it is clear that majority of respondents agreed

 That Kotak Mahindra bank offers competitive interest rates.

 That most of the customers do not use the services of alternative bank.
 .That customers will recommend kotak Mahindra bank to their friends and relatives.

30
Figure 4:

For the past how many years you have an account

with this bank ?

15-20 years

10-15 years

5-10 years

0-5 years

0
20
40
0-5 years 5-10 years 10-15 years 15-20 years

Interpretation:
From the above chart it is clear that -
-20% customers have an account with Kotak Mahindra bank from 0-5 years.
-40% customers have an account with Kotak Mahindra bank from 5-10 years
-30% customers have an account with Kotak Mahindra bank from 10-15 years
-10% customers have an account with Kotak Mahindra bank from 15-20 years.

Figure 5:

What kind of account do you maintain with this bank ?

Loan

Demat

Savings

Current

0% 20% 40% 60%

Current Savings Demat Loan

31
Interpretation:
From the above chart it is clear that -

-30% customers maintain current account with the bank.

-40% customers maintain savings account with the bank.

-20% customers maintain demat account with the bank.

-10% customers maintain loan account with the bank.

Figure 6:

Does the branch staff has the required skills and knowledge
about the bank's product and services?

excellent good average poor

Interpretation:
From the above chart it is clear that- –
-30% customers think that the branch staff has excellent required skills and knowledge about the
bank products and services.
-30% customers think that the branch staff has good required skills and knowledge about the bank
products and services
-20% customers think that the branch staff has average required skills and knowledge about the
bank products and services
-20% customers think that the branch staff has poor required skills and knowledge about the bank
products and services

32
Figure7:

Does the branch staff is friendly and behaves in a courteous

manner when dealing with you?
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

VERY FRIENDLY MODERATELY FRIENDLY NOT FRIENDLY

Interpretation:
From the above chart it is clear that –
-30% customers think that the branch staff is very friendly and behaves in a courteous manner
when dealing with them.
-40%% customers think that the branch staff is moderately friendly and behaves in a courteous
manner when dealing with them.
-30% customers think that the branch staff is not friendly and behaves in a courteous manner when
dealing with them.

Figure 8:

When you think of your bank what comes to your mind at

first?
35%
30%
25%
20%
15%
10%
5%
0%
personalised services wide branch network customer service computerized banking core banking

personalised services wide branch network customer service

computerized banking core banking

33
Interpretation:

From the above chart it is clear that-

-10% customers think about personalized services at first when they think about the bank.

-30% customers think about wide branch network at first when they think about the bank.

-30% customers think about customer service at first when they think about the bank.

-20% customers think about computerized banking at first when they think about the bank.

-10% customers think about core banking at first when they think about the bank.

Figure 9:

Which of the following facilities is given more importance in

your bank? -

40%

30%

20%

10%

0%
Loan Facilities
OD Facilities
ATM Facilities
Loan Facilities OD Facilities ATM Facilities

Interpretation-

From the above chart it is clear that-

-30% customers think that the bank gives more importance to loan facilities

-40% customers think that the bank gives more importance to OD facilities

-30% customers think that the bank gives more importance to ATM facilities

34
Figure 10:

What do you feel about overall service quality of your

bank?

Excellent Very Good Good Average Poor

Interpretation-

From the above chart it is clear that-

-10% customers think that the service quality of the bank is excellent.

-30% customers think that the service quality of the bank is very good

-30% customers think that the service quality of the bank is good.

-20% customers think that the service quality of the bank is average.

-10% customers think that the service quality of the bank is poor.

35
4.3-Overall Analysis-

The overall analysis shows that the respondents were from different categories and hence there
was diversity. Kotak Mahindra bank offers competitive interest rates. Most of the customers do
not use the services of alternative bank. Customers will recommend kotak Mahindra bank to their
friends and relatives. Most of the customers have an account with kotak Mahindra bank from 5-10
years. Most of the customers think that the branch staff is excellent in required skills and
knowledge about the bank products and services. Most of customers think that bank gave more
importance to OD facilities. Most of the customers think that the branch staff is moderately
friendly and behaves in a courteous manner when dealing with them. Most of the customers
maintain savings account with the bank. Most of the customers think about wide branch network
and customer service at first when they think about the bank. Most of the customers think that the
service quality of the bank is very good.

36
 Chapter - 5
My contribution to the
body of knowledge

37
―Knowledge without practice makes only half an artist‖. Knowledge is best effective when it is
both learnt & practiced. We get better clarity on the concepts when we directly apply it to practical
work environment.
As an intern in Kotak Mahindra Bank Ltd.(Noida Sector-51) for 45 days, I learnt a lot of things
which helped me to gain a great experience of sales and marketing as well as of corporate world. I
learnt a basic knowledge of how to deal with customers at the branch and also gained knowledge
of banking industry. Here I also groomed myself in convincing skills.

The most important part and best experience of the internship was giving me the opportunity to go
the calls with customers (going door to door for selling their products or services or over phone). It
helped me to actually observe and take into notice the whole process of selling banking products.
My contribution to the body of knowledge was to be a hardworking and sincere intern in that
organization.

38
Chapter 6

Findings, Suggestions and

Conclusions

39
Findings

• The findings of the study imply that, the bank is showing a satisfactory performance in the
field of retail banking, and there are some drawbacks in the key areas. If the bank don’t put
enough importance to this, it will be difficult for the bank to survive and compete with
other banks. The study shows that there is a good relation between the customer-employee
relation and the customer’s overall satisfaction.

• When we see about the ATM facility provided by the bank, it was found that the main
users of this facility are the SB account holders. Among the SB account holders 55% of the
customers make use of ATM facility. Another fact found was that about 45% of them face
the problem with the ATM facility.

• Along with the services, the customers give good importance to their relation with the
employees. When there is a good customer employee relation it is positively affecting the
goodwill of the bank.

• Another important finding is that 25% of the customers do feel irritated by the behavior of
the employees. This can have a negative effect on the bank in developing new customers
through the existing customers.

Suggestions

• Create a good awareness and confidence among the customers about the various services of
the bank and encourage them to make use of them.

• Start an extra counter in order to reduce the transaction time.

• Provide regular maintenance for the ATMs and provide a telephone facility at each ATM
connecting the nearest branch.

• Open a counter exclusively for customer care.

• Provide home banking for aged customers.

40
Conclusion
Even though Kotak Mahindra bank is showing a satisfactory performance in the retail area, it is
not sufficient enough to compete with the new generation banks.

At the same time it is sure that if the bank overcomes the existing drawbacks it will be difficult for
all other banks to compete with Kotak Mahindra bank. This is mainly because majority of the
customers have good faith in the bank.

The existing drawbacks have not much affected this faith of the customers. So the bank should
take solid steps to overcome these problems.

41
 Chapter 7

Summary of the Project

 Appendix
 Bibliography

42
Appendix

QUESTIONNAIRE

A STUDY ON CUSTOMER SATISFACTION

Name:

Contact No.:

Email:

Profession:

1. For the past how many years you have account with this bank?
(a) 0-5 yrs (b) 5-10 yrs (c) 10-15 yrs (d) 15-20 yrs

2. What kind of account do you maintain in this bank?

(a)Current (b) Savings (c) Loan a/c (d) Demat

3. Do you think your bank offers competitive interest rate?

(a) Yes (b) No

4. Do you use the service of alternative bank?

(a) Yes (b) No

5. When do you think of your bank what comes first in your mind?

(a)Personalized service (b) Wide branch network (c)Customer

Service (d) Computerized banking (e)Core banking

6. The branch staff has the required skills and knowledge about the bank’s products and
services:

(a)Excellent (b) Good (c) Average (d)Poor

7. Which of the following facilities is given more importance in your bank?

(a)Loan facilities (b) O/D facilities (c) ATM facilities

8. The branch staff is friendly and behaves in a courteous manner when dealing with you:

43
 (a) Very friendly (b) Moderately friendly (c) Not friendly

9. What do you feel about overall service quality of your

Bank?

(a)Excellent (b) very good (c) good (d) average (e) poor

10. Would you recommend this bank to your friends, relatives?

(a) Yes (b) No

Bibliography
Book reference

1. Sales management (Decision ,strategy and cases) –Richard R.Still ,

Edward W.Cundiff, Norman A.P. Govoni
2. Customer Relationship Management – Sheth Parvatiyar Shainesh

Websites

 https://wikipedia.in

 https://projects4mba.com

 www.kotak.com

Remarks

44